Annual Report of Employee Stock Plans (11-k)

Date : 06/19/2017 @ 6:05AM
Source : Edgar (US Regulatory)
Stock : Reliance Steel & Aluminum Co. (DE) (RS)
Quote : 72.79  0.0 (0.00%) @ 2:05AM
Reliance Steel share price Chart

Annual Report of Employee Stock Plans (11-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11‑K

(Mark One)

 

 

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2016

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

 

For the transition period from ____________ to ______________

Commission file number: 001-13122

A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:

Reliance Steel & Aluminum Co. Master 401(k) Plan

B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Reliance Steel & Aluminum Co.  

350 South Grand Avenue, Suite 5100

Los Angeles, California 90071

 

 

 

 

 

 

 


 

 

 

 

Reliance Steel & Aluminum Co. Master

 

401(k) Plan

 

 

 

Financial Statements and
Supplemental Schedules

 

As of December 31, 2016 and 2015 and

 

For the Year Ended December 31, 2016

 

 

 


 

 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Financial Statements and Supplemental Schedules

As of December 31, 2016 and 2015 and

For the Year Ended December 31, 2016

 

 

 

 

 

 

 

 

 

 

 


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Contents

 


 

Report of Independent Registered Public Accounting Firm

 

To the Plan Administrator

Reliance Steel & Aluminum Co. Master 401(k) Plan

Los Angeles, California

 

We have audited the accompanying statements of net assets available for benefits of the Reliance Steel & Aluminum Co. Master 401(k) Plan (the “Plan”) as of December 31, 2016 and 2015, and the related statement of changes in net assets available for benefits for the year ended December 31, 2016.  These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2016 and 2015, and the changes in net assets available for benefits for the year ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying supplemental schedules of delinquent participant contributions for the year ended December 31, 2016 and assets (held at end of year) as of December 31, 2016 have been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental schedules are the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental schedules reconcile to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedules. In forming our opinion on the supplemental schedules, we evaluated whether the supplemental schedules, including their form and content, are presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedules are fairly stated, in all material respects, in relation to the financial statements as a whole.

 

/s/ BDO USA, LLP

Los Angeles, California

June 19, 2017

 

1


 

 

Financial Statements

 

 

 

 

 

 


 

Relianc e Steel & Aluminum Co. Master 401(k) Plan

 

Statements of Net Assets Available for Benefits

 

 

 

 

 

 

 

 

December 31,

 

2016

 

 

2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment:

 

 

 

 

 

 

Plan interest in Master Trust

$

950,505,302

 

$

861,673,145

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

Notes receivable from participants

 

25,471,938

 

 

25,878,840

 

Employer contributions

 

6,431,873

 

 

5,987,246

 

Due from trustee

 

327,671

 

 

701,371

 

Total receivables

 

32,231,482

 

 

32,567,457

 

 

 

 

 

 

 

 

Total assets

 

982,736,784

 

 

894,240,602

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Excess contributions payable

 

571,976

 

 

786,881

 

 

 

 

 

 

 

 

Total liabilities

 

571,976

 

 

786,881

 

 

 

 

 

 

 

 

Net assets available for benefits

$

982,164,808

 

$

893,453,721

 

 

See accompanying notes to financial statements.

 

 

 

 

3


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Statement of Changes in Net Assets Available for Benefits

 

 

 

 

 

 

 

Year ended December 31,

 

2016

Additions

 

 

 

 

 

Income:

 

 

Plan interest in Master Trust investment income

$

82,202,215

Interest from notes receivable from participants

 

1,099,047

Total income

 

83,301,262

 

 

 

Contributions:

 

 

Participants

 

39,793,610

Employer, net of forfeitures

 

21,077,904

Rollover

 

3,175,673

Total contributions, net

 

64,047,187

 

 

 

Transfer from other plan

 

33,712,957

 

 

 

Other:

 

 

Revenue sharing program credit

 

1,262,980

 

 

 

Total additions

 

182,324,386

 

 

 

Deductions

 

 

 

 

 

Benefits paid to participants and beneficiaries

 

93,433,862

Deemed distributions of notes receivable from participants

 

57,669

Administrative expenses

 

121,768

 

 

 

Total deductions

 

93,613,299

 

 

 

Net increase

 

88,711,087

 

 

 

Net assets available for benefits, beginning of year

 

893,453,721

 

 

 

Net assets available for benefits, end of year

$

982,164,808

 

See accompanying notes to financial statement s.

 

 

 

4


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

1.

Description of the Pl an

 

The following description of the Reliance Steel & Aluminum Co. Master 401(k) Plan (the “Plan”) provides only general information. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

 

General

 

The Plan provides certain benefits to the employees of Reliance Steel & Aluminum Co. and certain subsidiaries (collectively the “Company”). The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”) and subsequent amendments.

 

The Plan is sponsored by Reliance Steel & Aluminum Co. (“Sponsor”) whose subsidiaries are participating employers (“Participating Employers”) in the Plan. The Plan is administered by the Reliance Steel & Aluminum Co. Employee Benefit Committee (“Plan Administrator”). Fidelity Management Trust Company (“Fidelity”) is the trustee and recordkeeper of the Plan. The Plan is a 401(k) plan established for all employees of the Participating Employers of the Company who are not members of a collective bargaining unit for which the Company is required to make contributions to another 401(k) plan. Employees of subsidiaries of Reliance Steel & Aluminum Co., other than those listed below, are not covered under this Plan as of December 31, 2016.

 

 

 

 

 

 

Allegheny Steel Distributors, Inc.

 

Liebovich Bros., Inc.

Aluminum and Stainless, Inc.

 

Metalcraft Enterprises, Inc.

American Metals Corporation

 

Metals USA, Inc.

AMI Metals, Inc.

 

Northern Illinois Steel Supply Co.

CCC Steel, Inc.

 

National Specialty Alloys, Inc.

Chapel Steel Corp.

 

Pacific Metal Company

Chatham Steel Corporation

 

PDM Steel Service Centers, Inc.

Clayton Metals, Inc.

 

Phoenix Corporation

Continental Alloys and Services, Inc.

 

Precision Flamecutting and Steel, Inc.

Crest Steel Corporation

 

Service Steel Aerospace Corp.

Delta Steel, Inc.

 

Siskin Steel & Supply Company, Inc.

Diamond Manufacturing Company

 

Smith Pipe & Steel Company

Durrett Sheppard Steel Co., Inc.

 

Sugar Steel Corporation

Earle M. Jorgensen Company

 

Sunbelt Steel Texas, Inc.

Feralloy Corporation

 

Toma Metals, Inc.

Fox Metals and Alloys, Inc.

 

Tubular Steel, Inc.

GH Metal Solutions, Inc.

 

Valex Corp.

Haskins Steel Co., Inc.

 

Viking Materials, Inc.

Infra – Metals Co.

 

Yarde Metals, Inc.

 

On January 1, 2017, Haskins Steel Co., Inc. merged into American Metals Corporation.

 

All employees of Alaska Steel Company and Best Manufacturing, Inc. became eligible to participate in the Plan as of January 1, 2017 and received past service credit for purposes of vesting under the provisions of the Plan.

 

Transfers from Other Plans

 

The value of the participant account balances, including notes receivable from participants, totaling $33,712,957 of the TSI Profit Sharing and Thrift Plan was transferred into the plan in 2016. All employees of Tubular Steel, Inc. and Metalcraft Enterprises, Inc. became eligible to participate in the Plan as of January 1, 2016 and received past service credit for purposes of vesting under the provisions of the Plan.

 

The Alaska Steel Company 401(k) Plan was merged into the Plan effective May 1, 2017.

 

 

5


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

Participation

 

Eligible employees may enroll into the Plan on the first day of the calendar quarter following three months of completed service. The Plan’s recordkeeper automatically enrolls them into the Plan with a 3% deferral contribution, unless the employee elects a different deferral contribution percentage, or declines to participate.

 

Contributions

 

Participants may defer up to 50% of eligible compensation into the Plan, subject to federal limits. In addition, participating employers make matching contributions per payroll cycle, and some participating employers may make additional annual profit sharing contributions to the Plan. Eligible participants must be employed on the last day of the Plan Year to receive the profit sharing contribution. All employer contributions are discretionary, as determined by the Company.

 

Participants may contribute eligible rollovers from other qualified defined benefit plans, defined contribution plans and individual retirement accounts.

 

Participant Accounts

 

Each participant’s account is credited with the participant’s contributions, the Company’s contributions, and allocations of investment earnings. The participant is entitled to the benefit from their vested account balance. Participants may direct the investment of their account balances into various investment funds offered by the Plan.

 

Vesting

 

Participants are immediately vested in their accounts with respect to participant contributions, eligible rollovers and earnings thereon. Participants vest in Company contributions and earnings thereon based upon the following schedule:

 

 

 

 

 

 

Years of Service

 

Percentage

Less than 1

 

0%

1

 

25%

2

 

50%

3

 

75%

4 or more

 

100%

 

 

 

 

Payment of Benefits

 

Upon retirement, disability, death, or termination of service, a participant is eligible to receive a lump-sum amount equal to the value of the vested interest in his or her account. Installment payment options are also available. Other withdrawals from participants' account balances may be made under certain circumstances, as defined in the Plan document.

 

Forfeitures

 

Forfeitures from nonvested participant accounts are used to reduce future Company contributions. As of December 31, 2016 and 2015, all forfeited nonvested account balances had been used to reduce Company contributions. For the year ended December 31, 2016, $545,424 was used to reduce the Company’s contributions.

 

6


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

Notes Receivable from Participants

 

Participants may borrow from their accounts up to the lesser of $50,000 or 50% of their vested account balance. Loans are secured by the respective participant's vested account balance and are subject to interest charges. Interest rates applicable to new notes are determined by the Plan Administrator on the first day of each calendar quarter based on prevailing market rates. Loans are repaid ratably through periodic payroll deductions over a term not exceeding five years and up to ten years for the purchase of a primary residence. The Plan holds notes from transferred plans whose maturities may exceed ten years. Notes receivable from participants as of December 31, 2016 bear interest at rates ranging from 2.75% to 10.50% and mature through November 2026.  Interest earned is recorded on an accrual basis as interest from notes receivable from participants in the Statement of Changes in Net Assets Available for Benefits.

 

Administrative Expenses

 

Loan administration, overnight postage and short-term trading fees are charged by the trustee directly to the account balance of the applicable participants. For the Plan year ended December 31, 2016, these expenses totaled $121,768.

 

Participant maintenance-related expenses, non-investment costs and administrative expenses of the Plan are not reflected in the accompanying financial statements as they are paid by the Company and constitute exempt party-in-interest transactions under ERISA.

 

Revenue Sharing Program

 

The Plan receives investment funds administrative revenue credits through its participation in Fidelity’s revenue sharing program. The revenue sharing credits are invested in the money market fund until allocated to Plan participants. Revenue sharing credits, if any, are allocated on a quarterly basis equally to Plan participants with a balance as of the end of each quarter. The revenue sharing program credit for the year ended December 31, 2016 was $1,262,980, of which $935,309 was received by the Plan in 2016, and the balance, $327,671, recorded as Due from trustee, was received by the Plan in 2017. The revenue sharing program credit for the year ended December 31, 2015 was $1,231,004, of which $529,633 was received by the Plan in 2015, and the balance, $701,371, recorded as Due from trustee, was received by the Plan in 2016.

 

2. Summary of Significant Accounting Policies

 

Basis of Presentation

 

The accompanying financial statements of the Plan are prepared under the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

As described in the Plan Accounting—Defined Contribution Pension Plans topic of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“Codification”), contract value is the relevant measure for investment contracts held by a defined-contribution plan that meet the fully benefit-responsive investment contract criteria. Contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan.

 

The Plan has a 100% interest in the net assets of the Reliance Steel & Aluminum Co. Master 401(k) Plan Master Trust (the “Master Trust”).  See Note 3, Information Concerning the Master Trust.

 

The Plan, through the Master Trust, invests in the Fidelity Managed Income Portfolio which is a common collective trust. The common collective trust invests in fully benefit-responsive investment contracts issued by insurance companies and other financial institutions, and in fixed income securities (see Investment Valuation and Income Recognition).

 

7


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

Investment Valuation and Income Recognition

 

The Master Trust holds investments in registered investment companies (mutual funds), a common collective trust, and in common stock. Registered investment companies (mutual funds) and common stock are stated at fair value based on the quoted market price of the funds or common stock. The investments in the registered investment companies represent the net asset value of the shares held by the Master Trust at year-end. The investment in the common collective trust is stated at net asset value as determined by the trustee at the end of the Plan year except when holding fully benefit-responsive investment contracts as described below. Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

 

The Plan invests in the Fidelity Managed Income Portfolio, a stable value fund held within a common collective trust, which has entered into fully benefit-responsive investment contracts to provide preservation of principal, maintain a stable interest rate, and provide liquidity at contract value for participant withdrawals and transfers. The stable value fund has an investment objective to maintain a constant net asset value while generating a slightly higher yield than the money market fund. Generally, there are no restrictions on a participant’s ability to redeem their investment in the common collective trust at the investment’s net asset value (NAV). However, withdrawals prompted by certain events (e.g., termination of the managed income portfolio, changes in laws or regulations) may restrict a participant’s ability to redeem the investment at its NAV.

 

Net Appreciation (Depreciation) in Fair Value of Investments

 

Realized and unrealized appreciation (depreciation) in the fair value of investments is based on the difference between the fair value of the assets at the beginning of the year, or at the time of purchase for assets purchased during the year, and the related fair value on the day investments are sold with respect to realized appreciation (depreciation), or on the last day of the year for unrealized appreciation (depreciation).

 

Realized and unrealized appreciation (depreciation) is included in the accompanying Statement of Changes in Net Assets Available for Benefits as Plan interest in Master Trust investment income, which is detailed in Note 3, Information Concerning the Master Trust.

 

Risks and Uncertainties

 

The Plan has an interest in the Master Trust which invests in various funds that hold investment securities. Investment securities are exposed to various risks such as interest rate, market volatility and credit risks. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in risk in the near term would materially affect participants’ account balances and the amounts reported in the financial statements.

 

The Plan provides investment options that hold securities of foreign companies, which may involve special risks and considerations not typically associated with investing in U.S. companies. These risks include devaluation of currencies, less reliable information about issuers, different securities transaction clearance and settlement practices, and possible adverse political and economic developments. Moreover, securities of many foreign companies and their markets may be less liquid and their prices more volatile than securities of comparable U.S. companies.

 

Use of Estimates

 

The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could materially differ from those estimates.

 

Payment of Benefits

 

Benefits paid to participants are recorded when paid.

 

8


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

Recently Issued Accounting Pronouncements

 

In February 2017, the FASB issued accounting guidance that changes the presentation and disclosure requirements for an employee benefit plan that holds an interest in a master trust. The guidance requires an employee benefit plan’s interest in a master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. An employee benefit plan is required to disclose their master trust’s investments and other assets and liabilities, as well as the dollar amount of its interest in these balances. The Plan adopted these changes in the 2016 Plan year without a material impact to the Plan’s financial statements.

 

3. Information Concerning the Master Trust

 

The Plan has a 100% interest in the net assets of the Master Trust. The following table summarizes the net assets of the Master Trust:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

2016

 

 

2015

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments, at fair value:

 

 

 

 

 

 

 

Interest-bearing cash

 

$

3,433,777

 

$

2,676,709

 

Money market fund

 

 

51,527,502

 

 

57,979,749

 

Mutual funds

 

 

786,844,385

 

 

712,230,090

 

Reliance Steel & Aluminum Co. common stock

 

 

77,331,651

 

 

65,846,855

 

Total investments, at fair value

 

 

919,137,315

 

 

838,733,403

 

 

 

 

 

 

 

 

 

Investment in common collective trust, at contract value

 

 

31,284,244

 

 

22,931,434

 

Total investments

 

 

950,421,559

 

 

861,664,837

 

 

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

 

 

Other receivables

 

 

350,088

 

 

21,822

 

Total receivables

 

 

350,088

 

 

21,822

 

 

 

 

 

 

 

 

 

Total assets

 

 

950,771,647

 

 

861,686,659

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other payables

 

 

266,345

 

 

13,514

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

266,345

 

 

13,514

 

 

 

 

 

 

 

 

 

Net assets in Master Trust

 

$

950,505,302

 

$

861,673,145

 

 

The following table summarizes the total investment income of the Master Trust:

 

 

 

 

 

 

Year Ended December 31,

 

 

2016

 

Investment income:

 

 

 

 

Net appreciation in fair value of investments

 

$

43,686,206

 

Interest and dividend income

 

 

38,516,009

 

 

 

 

 

 

Total Master Trust investment income

 

$

82,202,215

 

 

Participants may invest in certain investments offered by Fidelity, the trustee and recordkeeper of the Plan, including a unitized common stock fund containing common stock of Reliance Steel & Aluminum Co. and interest-bearing cash. At December 31, 2016 and 2015, the Plan, through the Master Trust, held 1,343,156 and 1,546,517 unitized shares of Reliance Steel & Aluminum Co. stock fund with a fair value of $80,849,171 and $68,531,872,

9


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

respectively. As of December 31, 2016 and 2015, the Reliance Steel & Aluminum Co. stock fund consisted of 972,236 and 1,137,055 shares, respectively, of Reliance Steel & Aluminum Co. common shares. At December 31, 2016 and 2015, the fund contained interest-bearing cash of $3,433,777 and $2,676,709, respectively, and other receivables of $350,088 and $21,822, respectively. The fund also contained other payables of $266,345 and $13,514 as of December 31, 2016 and 2015, respectively.

 

For risks and uncertainties regarding investment in the Company’s common stock, participants should refer to the Reliance Steel & Aluminum Co. Annual Report on Form 10-K for the year ended December 31, 2016 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2017.

 

 

4. Fair Value Measurements

 

The Codification establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy are described as follows:

 

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. An active market for the asset or liability is a market in which the transaction for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis.

 

Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in markets that are active; quoted market prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full terms of the assets or liabilities.

 

Level 3: Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

 

The following table sets forth by level, within the fair value hierarchy, the Master Trust’s investment assets measured at fair value as of December 31, 2016:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Interest-bearing cash

$

3,433,777

 

$

 -

 

$

 -

 

$

3,433,777

Mutual funds

 

786,844,385

 

 

 -

 

 

 -

 

 

786,844,385

Money market fund

 

51,527,502

 

 

 -

 

 

 -

 

 

51,527,502

Reliance Steel &

 

 

 

 

 

 

 

 

 

 

 

Aluminum Co. common stock

 

77,331,651

 

 

 -

 

 

 -

 

 

77,331,651

 

 

 

 

 

 

 

 

 

 

 

 

Total investments at fair value

$

919,137,315

 

$

 -

 

$

 -

 

$

919,137,315

 

10


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

The following table sets forth by level, within the fair value hierarchy, the Master Trust’s investment assets measured at fair value as of December 31, 2015:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Level 1

 

Level 2

 

Level 3

 

Total

Interest-bearing cash

$

2,676,709

 

$

 -

 

$

 -

 

$

2,676,709

Mutual funds

 

712,230,090

 

 

 -

 

 

 -

 

 

712,230,090

Money market fund

 

57,979,749

 

 

 -

 

 

 -

 

 

57,979,749

Reliance Steel &

 

 

 

 

 

 

 

 

 

 

 

Aluminum Co. common stock

 

65,846,855

 

 

 -

 

 

 -

 

 

65,846,855

 

 

 

 

 

 

 

 

 

 

 

 

Total investments at fair value

$

838,733,403

 

$

 -

 

$

 -

 

$

838,733,403

 

The Master Trust’s investments that are measured at fair value on a recurring basis, such as the money market fund, mutual funds, and equity securities are generally classified within Level 1 of the fair value hierarchy. The fair values of these investments are based on quoted market prices in active markets.

 

5. Related Party Transactions

 

Certain Master Trust investments are shares of mutual funds, shares of a common collective trust, shares of a unitized common stock fund and a money market fund managed by Fidelity, the trustee and recordkeeper as defined by the Plan. The Plan also engages in the purchase and sale of Reliance Steel & Aluminum Co. common stock. These transactions qualify as exempt party-in-interest transactions. Additionally, notes receivable from participants also qualify as exempt party-in-interest transactions. The Company compensating the employees who perform certain administrative functions of the Plan are also exempt party-in-interest transactions. 

 

6. Income Tax Status

 

The Plan received a determination letter from the Internal Revenue Service (“IRS”) dated May 20, 2014, confirming compliance with the Pension Protection Act of 2006 (“PPA”) and in consideration of the 2010 Cumulative List of Changes in the Plan Qualification Requirements. Although the Plan has been subsequently amended, the Plan Administrator believes the Plan is currently designed and operating in compliance with the applicable provisions of the Internal Revenue Code.

 

The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2016, there were no uncertain positions taken or expected to be taken that would require provision for income taxes in the accompanying financial statements. The Plan is no longer subject to U.S. federal tax examinations for years before 2013.

 

7. Plan Termination

 

Although it has not expressed any intent to do so, the Company has the right under the Plan to amend or terminate the Plan at any time, subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.

 

8. Excess Contributions Payable

 

Excess contributions payable represents amounts owed to participants who made excess contributions based on the compliance testing performed by the Plan’s recordkeeper. The excess contributions payable balances were returned by the Plan to the participants prior to IRS deadlines.

 

9. Nonexempt Transactions

 

As reported on the Form 5500, Schedule H, Line 4a – Schedule of Delinquent Participant Contributions, certain participant contributions and loan repayments were not remitted to the Plan within the timeframe specified by the Department of Labor’s Regulation 29 CFR 2510.3-102, thus constituting nonexempt transactions between the Plan

11


 

Reliance Steel & Aluminum Co. Master 401(k) Plan

 

Notes to Financial Statements

and the Company during the 2016 and 2015 Plan years. Late remittances amounted to $25,004 for the 2016 Plan year and the Company has remitted lost earnings to the Plan.

 

 

10. Reconciliation of Financial Statements to Form 5500

 

The following is a reconciliation of net assets available for benefits as reported on the Form 5500 with that reported in the accompanying financial statements:

 

 

 

 

 

 

 

 

December 31,

 

2016

 

 

2015

 

  

  

  

  

  

  

  

Net assets available for

 

 

 

 

 

 

benefits as reported on Form 5500

$

982,241,796

 

$

893,610,323

 

Adjustment from fair value to contract value

 

 

 

 

 

 

for fully benefit-responsive investment contracts

 

 

 

 

 

 

held by a common collective trust

 

(76,988)

 

 

(156,602)

 

 

 

 

 

 

 

 

Net assets available for benefits as reported

 

 

 

 

 

 

on the accompanying financial statements

$

982,164,808

 

$

893,453,721

 

 

 

 

 

 

 

 

 

 

 

The following is a reconciliation of the changes in net assets available for benefits as reported on the Form 5500 with that reported in the accompanying financial statements:

 

 

 

 

 

 

 

 

Year ended December 31,

 

2016

 

     

     

     

 

Net increase in net assets available for benefits as

 

 

 

reported on Form 5500*

$

88,631,473

 

 

 

 

 

Investments:

 

 

 

Adjustment from fair value to contract value for fully benefit-responsive

 

 

 

investment contracts held by a common collective trust:

 

 

 

Beginning of year

 

156,602

 

End of year

 

(76,988)

 

 

 

 

 

Net increase in net assets available for Plan benefits

 

 

 

as reported on the accompanying financial statements

$

88,711,087

 

 

 

*The net increase in net assets available for benefits as reported on Form 5500 includes asset transfers made during the year.

 

12


 

 

Supplemental Schedules

 

 

 


 

Reliance St eel & Aluminum Co. Master 401(k) Plan

 

Schedule H, Line 4a – Schedule of Delinquent Participant Contributions

 

Employer Identification Number: 95-11426 16

Plan Number: 003

Form: 5500

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

Total that Constitute Nonexempt Prohibited Transactions

 

Participant Contributions Transferred Late to Plan

Contributions Not

Corrected

Contributions Corrected

Outside VFCP

Contributions Pending

Correction in VFCP

Total Fully

Corrected Under

VFCP and PTE

2002-51

Check Here if Late Participant Loan Repayments are included: ☑

 

 

 

 

$25,004

$57,810

 

 

 

14


 

Relianc e Steel & Aluminum Co. Master 401(k) Plan

 

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

 

 

 

Employer Identification Number: 95-11426 16

Plan Number: 003

Form Number: 5500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

 

 

 

 

(c)

 

 

 

 

 

Description of Investment, including

 

 

 

 

(b)

Maturity Date,

 

 

(e)

 

Identity of Issue, Borrower,

Rate of Interest, Collateral,

(d)

 

Current

(a)

Lessor or Similar Party

Par or Maturity Value

Cost **

 

Value

  

  

  

  

  

  

 

Master Trust:

 

 

 

 

*

Master Trust:

Plan interest in Master Trust Investments

-

$

950,582,290

 

 

 

 

 

 

 

Notes receivable from

 

 

 

 

 

participants:

 

 

 

 

 

 

Notes receivable from participants with

 

 

 

 

 

interest rates ranging from 2.75% to 10.50%,

 

 

 

 

Notes receivable from

collateralized by participants' account

 

 

 

*

participants

balance and maturing through November 2026

-

 

25,471,938

 

 

 

 

 

 

 

 

 

Total

$

976,054,228

 

*Represents a   party-in-interest as defined by ERISA.

 

**The cost of participant-directed investments is not required to be disclosed.

 

 

 

 

15


 

Signature

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Reliance Steel & Aluminum Co. Master 401(k) Plan Committee have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

 

 

 

RELIANCE STEEL & ALUMINUM CO.

 

 

MASTER 401(k) PLAN

 

 

 

Dated: June 19, 2017

By:

/s/ Karla R. Lewis

 

 

Karla R. Lewis

 

 

Member of the Reliance Steel & Aluminum Co. Master 401(k) Plan Committee

 

 

 

 

 

16


 

Exhibit Index

 

 

 

 

Exhibit No.

 

Description

23.1

 

Consent of Independent Registered Public Accounting Firm—BDO USA, LLP

 

 

17


Reliance Steel (NYSE:RS)
Historical Stock Chart

1 Year : From Jun 2016 to Jun 2017

Click Here for more Reliance Steel Charts.

Reliance Steel (NYSE:RS)
Intraday Stock Chart

Today : Thursday 29 June 2017

Click Here for more Reliance Steel Charts.

Latest RS Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:43 V:us D:20170629 12:20:13